4-9-609. Secured party's right to take possession after default.
293 words·~1 min read·
/co/title-4-uniform-commercial-code/article-9-secured-transactions/4-9-609·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)After default, a secured party:
(1)May take possession of the collateral; and
(2)Without removal, may render equipment unusable and dispose of collateral on a debtor's premises under section 4-9-610.
(b)A secured party may proceed under subsection
(a)of this section:
(1)Pursuant to judicial process; or
(2)Without judicial process, if it proceeds without breach of the peace.
(c)If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties.
(d)If the collateral is a manufactured home, as defined in section 42-1-102 (48.8), or a trailer coach, as defined in section 42-1-102 (106), and is used and occupied by the debtor as a
place of residence, the secured party may take possession of the collateral pursuant to this section without judicial process only if there is clear and convincing evidence that the debtor has vacated or abandoned the collateral or the debtor voluntarily surrenders the collateral to the secured party.
(e)In exercising its rights under paragraph
(2)of subsection
(a)of this section with respect to collateral, a secured party may not disable or render unusable any computer program or other similar device embedded in the collateral if immediate injury to any person or property is a reasonably foreseeable consequence of such action. Any secured party who disables or renders unusable such a computer program or other similar device in such circumstances shall be liable in accordance with applicable rules of law to any person who sustains an injury to person or property as a reasonably foreseeable result of the secured party's action.